Aleksey Muratov: Independent associations should participate in legislation creation on legalization of cryptocurrencies in RF

The Russian authorities are considering the possibility of legalizing operations with cryptocurrency in the near future. According to Aleksey Muratov, Head of the International Public Movement Change the World Together, it is necessary to involve self-regulating associations of the corresponding orientation in the work on draft laws in this area.

As Сhairman of the Board of CWT Aleksey Muratov noted, public statements of representatives of the Russian Federation government and the Central Bank of Russia testify to the interest of Russian authorities in the need to legalize the cryptocurrency. "Just the other day, in an interview with Bloomberg Deputy Finance Minister of RF Aleksey Moiseev stated that the legalization of operations with cryptocurrency in Russia could happen in 2018. And in early February, the Deputy Chairman of the Central Bank of the Russian Federation, Olga Skorobogatova reported that the Bank of Russia and the Ministry of Finance will come out with an offer on the cryptocurrency regulation in Russia in the middle of the year," Aleksey Muratov informed.

"With the development of the cryptocurrency market, there is a need to change the legislation in force in the Russian Federation that would allow regulating this market. On the one hand, we understand that the current lack of legal regulation can positively influence on the development of initiatives to introduce blockchain technologies. However, on the other hand, this creates risks for the financing of illegal organizations including terrorism and legalization of criminal proceeds," Aleksey Muratov emphasized.

He also drew attention to the fact that in an attempt to counteract these phenomena, Russian legislators can adopt the most stringent legislative norms in the field of tax, labor, administrative law, etc. "This is likely to happen by analogy with the regulation of non-cash settlements and will be accompanied by the introduction of a licensing and certification system. Therefore, we consider it necessary to involve self-regulating associations of a corresponding orientation in the development of such draft laws in the Russian Federation, examples of which we can find in foreign jurisdictions," Aleksey Muratov said.

Chairman of the Board of CWT noted that such associations act on the basis of several basic principles. "First of all, members of associations undertake to resist the use of cryptocurrency for criminal activity, pursue a policy of disclosing information on the requirements of state bodies, provide clients with an opportunity to receive fair compensation in cases of damage caused through the fault of members of the association including by creating reserves, conduct financial and economic audit , check the work of management. This will allow to minimize the possible negative impact of excessive regulation and contribute to the development of market," Aleksey Muratov stated.

At the same time, he proposed the creation of such an association in Russia on the basis of the International Movement Change the World Together, recalling that at the end of March the first meeting of the CWT expert council took place. "At the meeting proposals were formed to four officially working groups involved in drafting legislative initiatives in the area of legal regulation of cryptocurrencies in the Russian Federation," he reported.

"The creation of association will allow unite the efforts of all participants in the legislative initiatives, provide them with legal support and the opportunity of experience exchange in developing a unified information policy regarding to the distribution of cryptocurrencies and the introduction of blockchain technologies. In addition, all participants will have the opportunity to interact within the association with state regulators," Aleksey Muratov explained the advantages of such an association.

Besides, according to him, in the near future CWT intends to conduct a presentation of the proposed to adoption Code of Association with subsequent discussion of its provisions. "We propose to join us in developing the basic documents for the formation of the association, which will determine the principles of construction and work," Aleksey Muratov summed up.